Published on 29 Nov 2021 on Zacks via Yahoo Finance

ETFs to Suffer as US Consumer Sentiment Slips to 10-Year-Low Mark

U.S. consumers are clearly worried about rising prices, as reflected by the surging inflation levels. The latest consumer sentiment readings for November look very disappointing as the metric has slipped to the lowest level in a decade compared to the previous month. The University of Michigan’s final consumer sentiment declined to 67.4 during November from 71.7 in October. However, the reading still compared favorably with the preliminary estimate of 66.8 in early November.

The disappointing consumer sentiment reading might affect the consumer discretionary sector, which attracts a major portion of consumer spending amid rising inflation levels. Certain ETFs that can feel the impact are The Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR, First Trust Consumer Discretionary AlphaDEX Fund FXD and Fidelity MSCI Consumer Discretionary Index ETF FDIS.

Going on, the measure of current economic conditions dipped to 73.6 in November from 77.7 in October. In November, a gauge of consumer expectations slid to 63.5, appearing weak compared to October’s reading of 67.9.